ANZ Bank chief executive Mike Smith says Australian banks are looking very strong, despite the current financial market turmoil. 

Mr Smith, who was speaking at an Australia-Israel Chamber of Commerce (AICC) lunch in Sydney, said the Reserve Bank of Australia (RBA) had been ahead of game in dealing with the ramifications of the crisis, which began in the US. 

The US government's $US700 billion ($840 billion) bailout of financial companies was vital to preventing more bank failures and an economic recession, he said.

"If Congress does not approve the plan I think I'll take up farming,'' he said. 

However, when our local cash for trash spruiker was asked about the likelihood of our banks passing-on to customers future reduction in interest rates, he said: “I have to fund the book & I’m running a business. It’s not a welfare state.” 

The RBA next monthly board meeting is on Tuesday, October 7. It is expected to cut official rates by 25 basis points. 

Not a welfare state? Only if you’re Mum & Dad …. government welfare for banksters: not a problem. 

Says it all really: ‘Heads he wins, tails we lose.’